PARIS — L’Oréal and Nestlé have signed an agreement clearing the way for L’Oréal to complete the acquisition of 48.5 million of its own shares from Nestlé, the French cosmetics giant said Monday.
The two parties signed the share purchase agreement on Friday, after the L’Oréal board authorized the sale to Nestlé of L’Oréal’s stake in Galderma — a condition for the broader deal to go through.
The completion of the deal now depends on the approval of competition authorities, L’Oréal said. A resolution and a special report of the statutory auditors regarding the agreement will also be submitted for approval to shareholders at L’Oréal’s annual general meeting on April 17.
The complex transaction will reduce Nestlé’s stake in L’Oréal to 23.29 percent of the share capital from 29.4 percent, and increase the share held by the Bettencourt Meyers family to 33.31 percent from 30.6 percent.
Nestlé paid for Galderma, for an enterprise value of 3.1 billion euros, or $4.27 billion at current exchange, via 21.2 million L’Oréal shares.
For the remaining 27.3 million shares, L’Oréal is to pay 3.4 billion euros, or $4.68 billion.